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New Business Models and Simplicity

In a world where nearly any product or service is available in an instant, on-demand services hold the upper hand over more traditional business models.
The rise of on-demand services speaks to a growing expectation for access and convenience. This module aims to explore current expressions of the Instant Economy through the lens of our Megatrend, Simplicity.

The Instant Economy is one where access to goods, products and services are delivered just as quickly as a need is identified. With more consumers leaning into and developing an appetite for instant gratification, what are the key expressions and implications of this for your business?

Trend - The convenience of vending machines is being enhanced by brands with the incorporation of contact-less payment systems that can be made through smartphones. This shift comes as this form of retail adapts to meet the demands of consumers’ rituals, with streamlined day-to-day transactions now being the norm.

Workshop Question - How could your brand effectively streamline the purchase journey for its customers?

Brands begin to offer everyday items like clothing and home textiles for rent

Trend - Consumers today are increasingly thoughtful with how they spend, leading many companies--especially those whose products are used infrequently--to offer rental options in lieu of expensive purchase items. Brands that sell products used on an everyday basis, like home decor and casual fashion, are pivoting to offer a rental model as well.

Workshop Question - How will consumers' rising expectations when it comes to value and convenience impact your brand?

Brick and mortar spaces will likely undergo long term changes post-COVID

Trend - After the restrictions on public movement due to COVID-19 have eased or lifted around the world, retail spaces will still require additional safety measures in order to keep infection risks at a minimum. This will occur (and is already occurring) in the form of contactless payment systems, limiting customers in-store, and redesigned layouts that enforce physical distance between customers.

Workshop Question - How is your brand preparing for a post-COVID world?

Trend - Vending machines that offer environmentally friendly products are on the rise, with everything from package-free items to eco-friendly materials being offered in these machines. This shift comes as brands in the quick-serve space aim to better adapt to the steady growth of conscious consumerism.

Workshop Question - How could your brand better adapt to the rise of conscious consumerism?

Trend - Pharmaceutical companies are shifting not only their layout but streamlining their services to keep up with the busy lives of consumers. Over-the-counter drugs are conveniently more accessible and can be picked up with little to no wait times thanks to new tech that enhances delivery and in-person services.

Workshop Question - How can you promote convenience through an element of your product/service?

Trend - Having gained a huge amount of subscribers and believers since its fairly recent inception, the subscription box service model is now entering in some highly specialized industries, and catering to highly specific demographics. By catering to "super fans" of specific products or experiences, services that fall into this category are able to expand their reach in terms of what can be offered via this format.

Workshop Question - How is your brand targeting its customers more specific interests?

The concept of second-hand designer shops is reinvented for modern consumers

Implications - Considering the Millennial's propensity for eco-consciousness and luxury goods, consignment shopping is a natural fit for their interests. As a result, this style of retail is being revisited and revamped. From digital drop-off consignment to designer-controlled consignment, tweaks to this space show an evolution that takes the Millennial appeal even further.

Workshop Question - What is one movement within your industry that you could own, and how?

Implications - As streamlined payment options continue to evolve with the use of emerging tech, a shift toward more experiential purchasing solutions are on the rise to better engage consumers. Moving beyond mere convenience, brands are tapping into social platforms, multimedia outlets and even AI capabilities to add more memorable moments to the purchasing journey. Focusing on experience rather than speed, these paths to purchase are representative of a growing consumer desire for brand experiences that are engaging even prior to product consumption.

Workshop Question - Think of the typical path to purchase for your consumer. How could you tap into adjacent industries to elevate that experience into something more memorable?

Implications - Where layaway-type payment plans have traditionally been used to buy larger items like home appliances, this model is now being used for online purchases of things such as flights and clothing. For credit-averse Millennials, in particular, this shift means that consumers are able to debit the purchase today and pay for it in installments as funds become available. Solutions like these are especially important as consumption habits change and Millennial consumers continue to engage with brands that align with their core values and lifestyle preferences.

Workshop Question - What is your brand doing to adjust to continued shifts in consumption habits?

Automotive subscriptions make luxury cars more accessible to consumers

Implications - Car subscriptions offer consumers a new alternative to buying or leasing a car, appealing to consumers who are looking for more flexibility and convenience than traditional ownership entails. This evolution in ownership speaks to the rise of accessibility, particularly for luxury vehicles, that consumers might otherwise not have the ability to afford or necessity to own, especially those in metropolitan areas.

Workshop Question - How can your brand look to make its luxury products more accessible?